Merkel Reacts to E.On Breakup Offer

By

Andrea Thomas

Updated Feb. 29, 2008 10:27 am ET

BERLIN -- Chancellor Angela Merkel Friday reacted to E.ON AG's offer to sell its high-voltage power grid to forestall the European Union's ownership unbundling plan, saying it doesn't make the German government's negotiation position with the EU any easier.

E.ON's offer to break up its business model of providing power generation capacity and transmission grid network conflicts with German government opposition to ownership unbundling.